the CODE Act of 2025

The CODE Act of 2025 mandates the Treasury Secretary to establish a public-private partnership program. This program will explore integrating anti-money laundering, identity verification, sanctions, and cybersecurity controls directly into decentralized smart contracts prior to deployment, and investigate "regulatory gateways" for post-deployment modifications. The bill also requires FinCEN to issue an advisory and the Treasury to define DeFi terms, ultimately mandating risk-based AML and sanctions compliance programs for decentralized finance services.